Michael Kompar, president of KWS, said that Florida's declining insurance rates underscore the impact of tort reform and Governor Ron DeSantis' efforts to stabilize the market. He made this statement in a post on X.
"We need to look at Florida. Their rates are falling. Tort reform has had a huge impact," said Kompar. "DeSantis attributes these decreases to reforms aimed at stabilizing Florida's insurance market, including measures to reduce litigation and encourage competition, with 11 new insurers entering the state in recent years. The overall picture points to a stabilizing market, though the extent of relief will differ by location and policy."
Florida's property insurance market is reportedly showing signs of recovery due to significant legal reforms passed by the governor and Legislature since 2022. These reforms have led to rate stabilization, an increase in market participation by insurers—with 12 new companies entering—and the lowest average statewide homeowners insurance rate increase in the nation at just 1% in 2024. According to an APCIA survey, 77% of Floridians support these reforms. Auto insurance has also benefited, with major insurers filing for rate reductions and a sharp decline in litigation. Despite these positive trends, lawmakers are considering bills that could reverse progress by reintroducing litigation incentives like one-way attorney fees. Such moves risk returning Florida to years of instability driven by legal system abuse.
States across the U.S. are crafting tort reform legislation to address legal system abuse, which has driven massive increases in insurance claim costs over the past decade. Studies by the Insurance Information Institute (III) and the Casualty Actuarial Society estimate that such abuse—fueled by plaintiff advertising, erosion of damage caps, fraudulent litigation, and third-party litigation funding—has added billions in liability and auto insurance costs. Florida’s 2023 tort reforms are already credited with stabilizing rates and attracting insurers back to the state. New legislation seeks to further limit inflated medical damages in lawsuits, and similar reforms are underway in Georgia, South Carolina, Texas, Missouri, and Tennessee.
On February 5th, Governor DeSantis issued a press release announcing significant improvements in Florida's insurance market. Statewide, major auto insurers such as GEICO, Progressive, and State Farm have filed for rate reductions of 10.5%, 8.1%, and 6%, respectively. Additionally, Citizens Property Insurance is implementing premium decreases averaging 5.6% statewide, benefiting approximately 75% of homeowners in Miami-Dade County. Over the past two years, 11 new insurance companies have entered the Florida market, contributing to increased competition and market stability.
Florida Insurance Commissioner Mike Yaworsky highlighted a year of achievements by the Florida Office of Insurance Regulation (OIR) in a January 8th press release. Yaworsky said: "Thanks to reforms championed by Governor Ron DeSantis, Florida’s insurance industry is improving." The agency made significant progress in stabilizing the property insurance market and strengthening the state’s health insurance sector. Reforms aimed at protecting consumers and improving market conditions have delivered tangible results. OIR has worked to ensure greater industry accountability and resilience against future challenges.